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Chapter 15:

Brands in a
Borderless World

Contents
How to manage brands across geographical
boundaries
Challenges and issues in going international
Branding strategies that can be adopted while
going international
Critical factors for success
Ethical brand positioning

Managing brands across boundaries


Brands are ubiquitous and consumers are consuming
the best brands available at their convenience.
The availability of a number of competitor brands
necessitates a brand to be present in the particular
market.
Global brands are looked upon with envy and have a
uniform positioning, personality, look, feel, and
advertising strategy across different countries.
However, they are not exactly identical but slight
changes can be there in the product offering,
communication, promotions, etc.

Reasons for going global


Slow growth in the domestic market
Increased competition at home and saturation of the
domestic market
Opportunities for higher profitability in the global
market
Tax incentives and government policies that promote
international marketing
Identification of similar market segments and
consumer needs in different country markets
Risk is diversified by being present in multiple
countries.

Advantages of global brands

Economies of scale
Increased brand life cycle
Availability
Perception of brand superiority
High prestige and status
Decrease in marketing cost
Uniform brand image
Barrier to entry
Opportunity to tap similar segments in different
geographical markets
Enhanced strategic flexibility

Disadvantages of global
brands

Needs and wants


Different usage patterns
Difference in consumer response
Preference for local brands

Challenges in going
international

Politico-economic factors
Socio-economic classifications
Social factors
Legal aspect
Technological factors
Cultural factors

Local or global
A local brand is a brand that is available in one country or a
limited geographic area.
A global brand on the other hand is a brand that uses a
uniform marketing strategy and marketing mix in all the
markets it serves.
An organization while marketing brands across boundaries
can either develop different brands for different markets,
which lead to a number of local brands in its portfolio that
have to be managed.
The other option is that it can treat the world as one market
and offer one brand globally. This leads to the development of
few global brands in the brand portfolio, which then becomes
easier for the organization to manage.

Advantages of local brands

Satisfying local needs


Socio-economic factors
Flexible pricing
Hedging risks
Gaining entry into a new market

Localization to
Standardization
Global
brand

Local
brand

(brand
name,
product,
positioning
modified)

Brand
name
and
product
modified

Brand
name and
positionin
g
modified

Brand
name
modifie
d

Positionin
g and
product
modified

Product
modifie
d

Positioni
ng
modified

(brand
name,
product,
positioning
standardize
d)

Brand strategy process for a


borderless world
Organizational Drivers
Vision
Resources and skills to go
international

Country markets to enter


Sharing of
best practices

PEST analysis
Market scenario study
Consumer analysis
Brand drivers
Global / local
Brand identity and elements
Brand image
Brand position in brand architecture

Feedback

Brand Entry strategy


How to enter
Product decision
Price decision
Place decision
Promotion decisions

Review of activities

Critical factors for success

Standardization and customization


Support global brand-building process
Build coherent international brand architecture
Assign managerial responsibility
Management team, brand champion, global brand
manager, global brand team

Share best practices


Create cross-country synergies

Ethical brand positioning


It is imperative for organizations to be ethical to build credibility and long term
brand equity.
It takes consistent application of resources, in terms of money, time, and
effort to build a brand and it can be ruined by the reckless activities of
individuals.
Following an ethical path is a matter of choice but working ethically and in the
larger interest of the brand will help reap the benefits of the brand for ages.
Thus, a brand that has been painstakingly built over time can be brought to
nothing due to reckless behaviour and ulterior motives of some people in the
organization.
Managing a brand should intertwine ethical practices into the organizational
internal brand building activities and the organizational culture should
motivate the employees towards the same. While revitalizing and
rejuvenating the brands over time, special attention should be paid so that
brand life along with the brand equity is enhanced.

Quick Recapitulation
How to manage brands across geographical
boundaries
Challenges and issues in going international
Branding strategies that can be adopted while
going international
Critical factors for success
Ethical brand positioning

Questions?